Donald Trump: “I Know Much More About Interest Rates Than Powell Does”
President Donald Trump continued his criticism of Federal Reserve Chairman Jerome Powell during a Michigan rally on April 29, 2025, stating, “I have a Fed person who is not really doing a good job,” and claimed, “I know much more about interest rates than Powell.”
These remarks, to a sympathetic audience, is the latest in an ongoing disagreement over monetary policy following the President’s tariff-focused economic agenda. Powell has remained a target of Trump’s criticism.
Trump Critique of Fed Chair Powell
President Trump’s comments at the Michigan rally directly target Federal Reserve Chairman Powell. The president has consistently criticized him, including a call for his “termination” on April 17, 2025, over delays in cutting interest rates.
Although Trump briefly denied plans to remove Powell, his renewed criticism and claim of superior expertise at the rally show a continued frustration.
The situation escalated after the Fed kept rates steady in January 2025, despite the President’s demands. Trump has also amplified the dispute with a flurry of Truth Social posts, drawing attention from markets and policymakers and leading to debates about the Fed’s role in a polarized economy.
Why Trump Believes He Outsmarts Powell on Rates
The recent criticism centers on the Fed’s refusal to lower interest rates, which the President argues are necessary to reduce the economic impact of his tariffs.
“The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition,” said Trump in March, with benefits for manufacturing and agriculture.
Powell, however, places data-based policy above all, citing inflation of 2.4%–0.4% above the Fed’s target 2% and weaker growth expectations. Powell’s speech in Chicago reaffirmed this cautious approach to match inflation and growth.
The Risks of Trump’s Push for Fed Control
The conflict has renewed fear of Federal Reserve independence, a principle shielding monetary policy from political influence.
The President seeks greater oversight of agencies like the Fed, raising concerns about potential interference. Powell reaffirmed that Fed decisions remain apolitical. Economists have also warned that weakening independence could disrupt markets, as well as pose risks to global dollar liquidity.
Public confidence in Trump’s economic management is declining, with the Pew Research Center on April 23, 2025, reporting fewer than half of Americans approve of his economic leadership. Trump’s claim of superior expertise has further contradicted views, contributing to market uncertainty.
Consumer Fears Grow Following Tariff and Rate Debates
The U.S. economy faces challenges, with inflation at 2.4% and softening growth projections. The President’s tariffs are increasing inflationary pressures, further complicating the Fed’s efforts to achieve a “soft landing,” as Powell noted.
Markets have been volatile, with the Dow dropping nearly 1,000 points on April 21, 2025, though slightly recovering on April 23.
Meanwhile, consumer pessimism is increasing, with 90% of Americans expecting tariff-driven price hikes, contributing to economic worries in 2025.
